Good afternoon ladies and gentlemen. Thank you for standing by. Welcome to the WPT Enterprises, Inc. Second Quarter 2009 Earnings Conference Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions. As a reminder, this conference is being recorded today, Wednesday, July 29, 2009.

I would now like to turn the conference over to Josh Harp, WPT’s Corporate Controller. Please go ahead.

Josh Harp

Good afternoon everyone and thank you for joining us today to discuss WPT Enterprises second quarter 2009 financial results. With us on today’s call are Steve Lipscomb, President and Chief Executive Officer, and Tom Flahie, Chief Financial Officer. By now, everyone should have access to the press release, which went out this afternoon at 4:00 pm Eastern Time. If you have not received it its available on the Investor Relations portion of the World Poker Tour website.

Before we can begin today we would like to remind everyone of the Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. The following prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore undue reliance should not be placed upon them. For a more detailed discussion of the factors that could cause actual results to differ materially from those projected in any forward-looking statements, we refer you to the company’s filings with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and the Quarterly Report on Form 10-Q as well as the company’s current reports on Form 8-K.

And with that I would like to turn the call over to Steve.

Steven Lipscomb

Thank you, Josh. And thank you everyone for joining us this afternoon. On today’s call I would like to highlight key events in the second quarter of 2009 and update you on our primary initiatives for 2009 including our World Poker Tour’s sponsorship business and our online subscription business ClubWPT.com. And finally I will discuss strategic alternatives. Starting with the World Poker Tour and our domestic and international television operations.

Season 7 of the World Poker Tour completed the initially airing on July 12 of all 26 episodes on Fox Sports Net, 11 Season 7 episodes premiered on FSN in the second quarter of 2009 and two episodes premiered in July. In addition, Season 3 through 5 continue to air with regularity on the Travel Channel and Season 6 continues to air on GSN.

We have made significant progress in signing Season 7’s sponsorship deals in our important markets. We previously announced sponsorship deals with FullTiltPoker.net and PokerStars and we are close to a Season 7 deal for the remaining unsold European territories. These three deals cover most significant markets in Europe and the Americas. Of particular note is the fact that with these deals our international Season 7 revenues will be twice the size of our U.S. Season 7 revenues in the U.S.

Our international television strategy has evolved into a dynamic offering of services that serve the particular needs of our broadcast partners and our sponsors in particular markets. In the second quarter, we recognized revenues from FullTiltPoker.net, a virtual poker education site as 11 Season 7 episodes were aired on FSN. We also recognized significant revenues from PartyGaming in the second quarter. PartyGaming is the international sponsor of Seasons 4, 5, and 6 of the World Poker Tour Television Show as well as Season 1 of the Professional Poker Tour. We're nearly finished with Season 7 post-productions for the international territories.

Some WPT Season 7 sponsorship revenue from PokerStars will be recognized in the fourth quarter of 2009, but most of the revenue will fall in 2010. We continue to have interest from multiple parties to associate and affiliate with the World Poker Tour brand. Despite challenges and turbulence in the global financial markets, the international online poker market remains strong. We are taking a measured approach to strike reasonable deals that benefit our partners and our shareholders.

We recently announced a schedule for Season 8 of the World Poker Tour and we added a new tour stop in Lawrenceburg, Indiana at the remarkable Hollywood Casino Lawrenceburg in March of 2010. The first Season 8 tour stop was held at the Bellagio, Las Vegas about a week ago, as always it was a wonderful event. We are upgrading the production this year by filming all of our tour stops in high-definition television. Season 8 will add a crisper, more lush look to the unmatched poker story telling that has long been a hallmark of our television production.

We are also extending the World Poker Tour to a number of additional non-U.S. venues in 2009. We have already announced Tour Stops in Barcelona, Cyprus, Morocco, Slovakia, and Venice and more are to come. The Barcelona event was held in June, the Slovakia event will be held in late August early September. And the Cyprus events will follow right after the Slovakia event. We are licensing our brand to online gaming companies to hold WPT branded or co-branded tour events. Some of these events will be filmed for Internet streaming. Our online partners drive significant value out of sending players to a land-based WPT tournament where they are the primary sponsor.

Now, back to the U.S. market. On our last investor call, we discussed the progress of our important partnership with FSN and the News Corp Family. This partnership includes the broadcast of Season 7 of the World Poker Tour Television Series across the United States, the broadcast of 13 one-hour ClubWPT.com television shows and our World Poker Tour, poker community at MySpace.com/ClubWPT.

Our partnership continues to expand including FSN's commitment early in the year to broadcast Season 8 of the World Poker Tour Television Series slated to begin airing late 2009 or early 2010. Joint efforts to promote and grow ClubWPT.com as a business have been many. We funded Season 1 of the ClubWPT Television show full of callouts to join the club. And FSN broadcast the shows across its fast network. Fox also ran 30-second spots to increase awareness and to drive the business. In July, Fox and the WPT undertook a significant joint marketing push to advance the ClubWPT business. WPT added promotions to the side and generated a broad based initiative with its partners and its online assets to drive awareness and signups.

At the same time following the lead of FSN's new President the network initiated significant media push. The initiative has included running 30 to 60-second spots for ClubWPT across their network and other Fox networks as well. They have been airing Season 1 shows of ClubWPT.com across their networks including a 14-hour marathon on July 15 and 16. Both sites are sending e-mail blast to their respective mailing lists and Fox has been including callout integrations in major league baseball games in broadcast. This marketing push has generated results. We are in the 10-month of running television marketing to build brand awareness and drive traffic to ClubWPT.com and we have seen real growth with over 18,000 subscribers to-date, including 2,400 trial memberships. We also have 183,000 freeplay members, an increase of over 100,000 since the beginning of the year. These numbers are as of July 27.

FSN is running a number of special ClubWPT promotions this month and we have seen a 16% growth in new customers in the first three weeks of July. We are also widening our marketing strategy for ClubWPT in 2009 by expanding our affiliate related network. Currently, we use the MySpace World Poker Tour Community at MySpace.com/ClubWPT as a referral source of subscribers in ClubWPT. This Poker destination has games, entertainment, poker content, video clips, and the new ClubWPT.com Television Shows. We are actively seeking new affiliates for this business.

And now turning to our China. In our last investor call we outlined the process that we have begun to look for strategic partner for our China business. We expect to shortly sell 90% of this venture to one of the key vendors that we partnered with in building the China business, that partner will fund all future operations and we'll continue to build the business using a foundation that we've laid. We hope with time that our partner will enhance the value of this venture. One important note is that the WPT brand will not be encumbered or restricted in anyway going forward in the Chinese market.

The WPT China logo and brand will be used during the Season 2 Grand Finales to be held in the third quarter. And then the WPT brand is not to be used in the future without our written permission. We are beginning to see the results of our turnaround efforts with two successful consecutive quarters. We've made money had positive cash flows for our continuing operations in the first and second quarters and we are optimistic about our financial picture for the rest of the year. The turnaround actions that we began in the second quarter of 2008 were difficult, but necessary. And we expect good things in the future.

The first good thing is that we expect to be profitable in the third quarter. In today's press release, we acknowledged our ongoing conversations with current and potential partners and other interested parties about strategic ways to maximize the value of the WPT brand in the U.S. and foreign markets. We also acknowledged that we have provided confidential information to certain of these parties in order to facilitate those discussions. We are not providing any further information about this matter at this time.

In closing, I want to emphasize that we believe that we are taking the necessary steps to reposition WPTE for long-term profitable growth. The actions that we've taken to-date make us more agile and capable of adapting to an ever changing and expanding market.

Now I like to turn the call over to Tom to walk you through the financials for the quarter. Tom?

Thomas J. Flahie

Thanks, Steve. First I will discuss the financial highlights for the second quarter. Second quarter 2009 revenues exceeded the high end of our guidance due to expanded international television distribution under the PartyGaming sponsorship agreement. We were profitable in the second quarter. Cash flow was positive in the second quarter and excluding the first quarter non-cash investment impairment charge we were profitable and cash flow positive from operating activities of continuing operations for the first six months of 2009.

Now, on to the details. Revenues for the second quarter of 2009 decreased by $499,000 to $4.6 million, compared to the same quarter last year. Revenues for our television segment decreased by $762,000 and revenues for ClubWPT increased by $531,000 in the second quarter. These are the major revenue variation between quarters. In 2009, we aired a 11 one-hour episodes of Season 7 of the World Poker Tour, compared to the delivery of eight two-hour episodes of Season 6 in the second quarter of last year. The program of fee was a $125,000 in this year 2009, compared to $300,000 last year.

International television revenues increased 663,000 in the second quarter with sponsor revenues from PartyGaming increasing by 988,000. Club revenues grew 10% in the second quarter, compared to the first quarter. We expect continued growth in Club revenues in the third quarter with the July marketing push by FSN that Steve talked about. Year-to-date revenues were about the same as last year at $10.1 million. Higher ClubWPT revenues were personally offset by declines in television segment and licensing segment revenues.

The revenue trends in the second quarter were consistent with the revenue trends we experienced in the first quarter. Expanded international television distribution in Central and Eastern European countries improved second quarter revenues are expected at a similar impact in the third and fourth quarter. Overall gross margins were 59% in the second quarter of this year, compared to 45% in the second quarter of last year, a significant improvement.

Gross margins from the WPT Television Series were 53% in the second quarter of 2009, compared to 39% in the second quarter of 2008 due to significantly lower cost of production of Season 7. We expect to the improvement in television gross profit margins to continue into the next two quarters. Year-to-date gross margins were slightly higher than second quarter gross profit margins. Year-to-date gross margins for the WPT Television Series were 55%, compared to 37% in the same period of last year, due to significantly lower cost of producing Season 7. Production of Season 7 is now complete and post-production of Season 7 is significantly underway.

Selling, general, and administrative expenses decreased by $3.6 million to $2.3 million in the second quarter of 2009 is a significant reduction. Personnel related costs decreased by $1.2 million, website operating costs decreased by $302,000, and marketing costs decreased by $1.7 million.

We expect the lower selling, general, and administrative costs to continue into the next two quarters. Year-to-date selling, general, and administrative expenses decreased by $5.3 million to $5.5 million almost half. Personnel related cost reductions implemented in the second quarter of 2008 through the first quarter of 2009, a shutdown of the real money online gaming business in November 2008 and the shutdown in the China business in March 2009 were the reasons for the significant reduction in overhead.

Income from continuing operations in the second quarter of 2009 was $370,000, compared to a $3.3 million loss for the second quarter of last year. Year-to-date income from continuing operations excluding the first quarter non-cash impairment charge was $849,000, compared to a $5.6 million loss in the second quarter of last year. Our cash flow from operating activities of continuing operations was also positive in the first six months of 2008 at $1.8 million, compared to a $4.1 million outflow in the same period of last year.

As Steve mentioned we are negotiating a WPT Season 7 sponsorship deal for the remaining unsold European territories. We will then have sponsorship agreements to cover most of the significant markets in Europe and the Americas. If this sponsorship agreement is signed, we will need to restate and reissue our second quarter 2009 earnings release. We will need to do this because in May of this year a new accounting standard that covers events that occur after the balance sheet date, but before the financial statements are issued was effective.

Our financial statements will be issued when they are filed with the SEC. If the WPT Season 7 international sponsorship agreement is signed prior to the time we file our financial statements with the SEC than our second quarter 2009 cost of revenues will decreased by approximately $250,000 from the amount in today’s press release all required by that accounting standard. The second quarter 2009 income tax provision will also be updated. We consider delaying our second quarter earnings release until we knew the outcome of this agreement, but due to recent volatility in our stock price, we decided to keep our previously announced earnings release date.

At the end of June, we had cash, cash equivalents, and investments totaling $21.3 million, which included $3.9 million of auction rate securities. We drew down on the $2.7 million line of credit with UBS that's the broker that holds our ARS, thus providing liquidity for a portion of our ARS. Excluding the borrowings from the line of credit, our cash and investment balances increased by $1.2 million in the first six months for this year. We do not believe that the lack of liquidity relating to our ARS will have an impact on our ability to fund our operations over the next 12 months.

And now turning to Q3 2009 guidance. For the third quarter of 2009 revenues are expected to be in the range of $3.2 million to $3.4 million. We also expect a small profit from continuing operations. One word of caution about that forecast is we expect to begin delivering our Season 7 episodes to PokerStars in the fourth quarter. If we deliver these episodes ahead of the plan delivery dates then we will shift revenues and profits from the fourth quarter into the third quarter.

Reason on giving that caution is our Season 7 post-production activities are currently ahead of schedule. One final point in August 2008 the NASDAQ stock market notified us that we were not in compliance with the $1 of minimum stock listing price requirements. On July 1 of this year we received notice from the NASDAQ that we are now in compliance with the $1 minimum stock price listing requirement and the de-listing proceeding is now closed.

Now I'd like to open the call up to take your questions. Operator?

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). And our first question comes from the line of Mark Smith with Spherion. Go ahead.

Mark Smith – Spherion Corporation

Just I've got a handful of questions here to run through with you. First off, if you could just give us anymore insight on G&A your guidance as you expect that to be down, but can you give us some insight sequentially how that G&A should flow?

Steven Lipscomb

Tom I would go, I'd let you take that.

Thomas J. Flahie

Okay. It’s a good question because we’ve had cost reductions as my prepared comments indicated starting back in the second quarter of 2008. And we largely completed our cost reductions in the first quarter of 2009. So the first real quarter reflecting all of the combined cost reductions for the second quarter of this year and we expect the SG&A to be similar going into Q3 and 4. SG&A is relatively fixed there is very little variable cost in there related – anything related to revenue.

Mark Smith – Spherion Corporation

Okay. So it’s relatively fixed, so where we saw that this quarter should be a decent run rate for us to look at?

Thomas J. Flahie

That’s right.

Mark Smith – Spherion Corporation

Okay, perfect. Discontinued operations from China, have we worked through that with this last piece here in Q2?

Thomas J. Flahie

Yes. We spend all the money that we’re going to spend the China operation is not going to take any more resources from the company.

Mark Smith – Spherion Corporation

Okay, all right. And then Steve can you just repeat I think you had given some numbers on your increase in people online, your ClubWPT. Can you just repeat that I think it was a 100,000 plus a quarter?

Steven Lipscomb

What the numbers were they're 18,000 subscribers those are the people who are actually paying us a monthly subscription in order to be a part of the club. And then there is a much larger number, I think is a 180,000 that are freeplay players. So, those are people certainly that that play for free on the site and that we offer the club services, but they come and they play like they do on Yahoo Games for free. We have not yet gone after monetizing them from an advertising standpoint, but that certainly is something that we see in our future.

Mark Smith – Spherion Corporation

Okay. And as we look at legislation that's moving through is the number of people that you attract into the website now may be a good indication of what we could see or potential growth if we had legalized poker domestically?

Steven Lipscomb

Yeah. I think if poker opens up in the United States you can expect that we would be in very strong force in that, what this does is allows us to have a database of people that are active with us already and would certainly be a group that we could port over, but candidly I think that's going to be one of many things. In other words if that change takes place and I think we all need to cautious about what those things mean because we've already witnessed, that they happen often times slower than you think, and once they even happen you don't always know what they mean, but if in the eventuality because we all think its likely to happen in the U.S. that there is online poker allowed, I think that we will have some really terrific offers from partners both in the media world as well as in the online poker world that would allow that number in the club to be a very small one, compared to what that business would be.

Mark Smith – Spherion Corporation

Okay. And then just back to some of the numbers on subscribers on freeplay players, can you give us the delta from first quarter to second quarter on that?

Steven Lipscomb

Tom do you have that, I can really guesstimate, but if you actually know the number that would probably be more, more helpful.

Thomas J. Flahie

I am just piling through my stuff here to dig it up.

Steven Lipscomb

You want to go ahead and keep it, you have more to go keep asking we will try to present that…

Mark Smith – Spherion Corporation

All right. I think two more and then I will jump back in the queue if I've got anything else. And sorry, this one is for Tom as well, when do you expect to file your Q, what's your mandatory file date.

Thomas J. Flahie

It's mid-August we traditionally will do it towards the end of the first week of August, the Club numbers, I don't have the exact number, but from memory its about 15,500 at the beginning of the quarter and it was roughly the same number at the end of the quarter and so the increase through 18,000 that we quoted happened in the first three weeks of July.

Mark Smith – Spherion Corporation

Okay. So, that's after the – after the end of Q2 that you started seeing more of an increase in the subscriber base?

Thomas J. Flahie

Yes.

Steven Lipscomb

That's specifically because of the new initiative we sat down with our partners at Fox and News Corp and just said guys it seems to work, we promoted now we got to put some extra oomph behind it and the extra oomph got us a lot more players.

Mark Smith – Spherion Corporation

And I guess it brings up another question, just looking at your advertising and marketing expense you gave guidance that that would be down compared to the same period in '08, or maybe looking at sequentially is there more of a push in more dollars that you will be pushing out of the door now in advertising and marketing dollars compared to Q2.

Thomas J. Flahie

I don’t see us doing, the way that we – the way that we have been growing this business with our partner is and the reason that we have a partner to get such a significant share of this business is they have a lot of media muscles. So what we are working through is finding the appropriate and better ways through their many marketing and media outlets, and simply use the excess amounts of inventory that they don’t use. At the same time, we just touched so many people in the Poker world through our many different brand extensions in the like that we are focusing in and trying to make those things work without really having to do a significant above the line marketing push. And there are two real reasons for that, one of them just is its money. Venture that we are now trying to make into a profitable venture for all of us its' that above the line cost every dollars is a real dollar, but the other thing is, there is an awful lot of very expensive buying going on from online gaming sites and that makes all of those various things that you would do and above the line market incrementally more expensive candidly that I've ever seen in the market. So what tends to happen is that your return on investment doesn't oftentimes really validate doing the above the line spend. So the reason that we tell you that this that we are using the resources we already have and that seems to be working so long as we with our partner at FSN find the right things on their side and we do that together.

Mark Smith – Spherion Corporation

Okay. So when I saw a commercial here watching a baseball game I guess a few weeks ago on Fox Sports that the cost of that is for the most part covered by Fox or News Corp that’s kind of covering and put thing that in an empty spot?

Thomas J. Flahie

That's them doing what they agreed to do in our deal.

Mark Smith – Spherion Corporation

Okay. Perfect. Then last question just on the guidance on the top line that sponsorship agreement that you are looking at probably announcing here in the next few weeks. I imagine that’s build into your Q3 guidance?

Thomas J. Flahie

No, we know revenue from that agreement in the current fiscal year.

Mark Smith – Spherion Corporation

Okay.

Thomas J. Flahie

That’s a next fiscal year situation.

Mark Smith – Spherion Corporation

That’s next fiscal year. Okay, that makes sense. And that's the one that you would need to I guess restate this quarter's results if that one comes through?

Thomas J. Flahie

Yes.

Mark Smith – Spherion Corporation

Okay.

Thomas J. Flahie

But restate before the 10-Q is filed.

Mark Smith – Spherion Corporation

Restate before the Q is filed, okay. That makes sense. That does it for me. Thanks.

Congratulations on another quarter or profitability. My question now is along the lines of revenue growth and sustainable revenue growth. When do you think we will see it turn in that area?

Steven Lipscomb

Well I think I'm going to give you the 30,000 foot view, we as a Board and as management in late 2008 sat down and said our predominant goal for 2009 is to do what it takes to be a profitable company despite the challenges in the global markets. And not a small order given where we have been in the two years before, but I think what we are looking at in 2009 and what I think with a tremendous amount of work and challenge and the bad stuff that comes with having to do the things that we've had to do to bring cost down of the leg were really to make it so that as we reinvested ourselves for a company that had eight figures of earnings every year from license fees in television with that market completely non-existent now because of the way that Internet has affected the poker market that we helped begin 7 somewhat years ago.

So we in that position, we are looking at and we completely changed in the sponsorship modes and now we are making in a entirely different way I would say that that we look at ourselves with that cautious optimism that you have when you feel like its working. And that is to say that we are we have managed to really replace the thing that was our primary way that we make money with a sponsorship model and be in a position where instead of losing money we are now making money.

So, I know that's not the question you asked, but that’s my preamble for the answer to the question that you asked because we really are looking at 2009 and making sure that with continued volatility in not just the U.S. market, its global markets that are experiencing these downturns so that every time our Head of Sales and Marketing goes out into the marketplace and is on the verge of making a deal in a territory we know there is a risk that that territory all of a sudden changes the way they think about poker and or all of a sudden there is a downturn.

So nobody is buying sponsorship. So given all of that universe we hope in this year as we've told you in the third and fourth quarter to be in a place where we are at least making some money not losing money. Now on to your actual question, which is as we are looking at the actual growth potential within our business when do we start seeing that? And what I can tell you is the thing that we have established is much more dynamic I believe and capable of growth opportunities then perhaps where we were before. We've been struggling with this fact that license fees were under so much pressure that eventually they went away. In the sponsorship side of the things, there are many now, not many let's say a dozen or truly 6 to 10 very healthy companies in the global marketplace that have recognized the fact that if they all try to go out and create a new World Poker Tour and call it something else, they will spend a lot of money and more than likely they will throw that money away.

That means that we in a marketplace with multiple buyers have the opportunity really to grow into sponsorship in such a way that we have people really buying for our material. And we started to take the steps without really risking our primary directive of 2009 from the Board of Directors of staying profitable. As we start to get new revenues from entities like we get when we get the event in Venice like the event that we are going to be doing in Slovakia et cetera. So, that we start to head into those markets. So, what our real revenue growth are to be is from sponsorship opportunities going more and more global and having completely reversed from a company had predominantly most of its revenue in the United States market. We now are completely reversing that curve, I see that trend as stabilizing, but probably continuing in such a way that there are just exploding poker, markets out there now that we are working together with our Managing Director, Rohin Malhotra very hard to make sure that we make the right deals in the right territories to take the strength of our brand and use it for the large sponsors out there.

Stephen Silk – C. Silk & Sons

To kind of leapfrogs my one of my later questions right up to the forefront. The companies that have inquired to be looking into your books I would assume as far as what somebody would be willing to pay to the shareholders would have to include some of that potential, not necessarily what your revenue stream is right now. So can you, I know you can't give us any news, but in general, who is looking at you?

Steven Lipscomb

I can give you names they just didn't have anything to do with this question. No the reality as we told you at the top and I am going to be the politician because I have been instructed that I need to so really all you're going to hear from me is that I am not going to comment about any of that.

Stephen Silk – C. Silk & Sons

Because I do think your value as far as assets are probably intangible assets, that you can’t necessarily sell with value, but certainly with what you've developed as far as a brand should have a lot of value to somebody especially with deeper pockets in a multitude of areas?

Steven Lipscomb

It’s sounds like you need a non-disclosure sir.

Stephen Silk – C. Silk & Sons

Let me just jump over a couple of other things the Europe sites where you said you're going to be holding events with those be televised events, will those be sponsored events by WPT.

Stephen Silk – C. Silk & Sons

They are always sponsored events there are some of them as I said in my comments maybe broadcast on the Internet, but as of now we don’t have affirmative plans that some of those some of those deals allow for the possibility if we negotiate really a side deal or some sort of televised component. But right now they're not.

Stephen Silk – C. Silk & Sons

I brought up this in the past, but the value of having WPT event in any particular venue as it drives traffic is so these European stops going to generate revenue from you are they just going to be an expense that you expect to incur.

Steven Lipscomb

No, no, this absolutely is a revenue source for us so we have been paid for these events depending on the size of the event and what are desires to be in a particular territory we received fees from them and I don't know Tom have we disclosed any of those.

Thomas J. Flahie

No, we haven't.

Steven Lipscomb

And I think, but the reason we don't disclose those are probably obvious, but the answer is we have and part of the increase sort of sponsor revenue figures that we are seeing are coming directly from this business. So you can assume that the way we look at future business for us starts out with the evaluation that we make more money than we spend on this particular venture and if sothen we are willing to look at it and find a way because particularly in new territories even if we make some revenue on it we believe it helps build the brand. But I must tell you that there is great value that we bring to the table for the casino and the sponsorship partners that have already been seen. In other words we have just started doing these kinds of events, have had people coming back asking for more because it drives what they want, which is customer experience and it drives sort of money can't buy sort of promotions that not only gets customers, but retains them.

Stephen Silk – C. Silk & Sons

I've seen that first ended Fox is what it means for a month long period for them. Just two more quick ones, the announcement on the 17th about the Progressive Jackpot, where you were licensing it through Lakes and game is there any material revenue to be generated there and can it expand?

Steven Lipscomb

I am going to let Tom echo my answer, but I would say that right now we don't have in our projections significant revenues coming from that source, agreed Tom.

Thomas J. Flahie

Yes. And there was a press release that was put out by one of the native american tribes, that didn't come from us.

Stephen Silk – C. Silk & Sons

Okay. Very good. And my last question is are you enjoying these last two calls better than the previous six?

Steven Lipscomb

I got to tell you its one of those times where there was a period of time in 2008, where it was the, the worst thing in the world was the feeling that there is that misery enjoys company. As everyone is starting to improve I think in the global market, we are no longer fighting a battle that I think we were never going to win and I think that is much, much preferred meaning just we as the party that was, are going to not display by the rules, but invent new rules that to make sure that we are playing by the rules, it's tough to win that poker game.

So, the answer is, its really terrific to be in a place where we are beginning to show some of the value that we built over the last years in the World Poker Tour brand. I still believe when you take a macroscopic look at this company we are in a position of having cash in the bank we have a brand that is global and is growing in new markets all the time and we don’t have debt and being able to still be in that position after all that we've gone through in the last two years in my mind is it makes us very fortunate and rare. So, yeah the answer is its much preferable to those calls where we just kept feeling like we are trying to bang our head up against a wall that wasn't going to get there and I don’t see nearly as many alligators when I walk out the front door.

Stephen Silk – C. Silk & Sons

Continue your success. Thanks for taking my call.

Steven Lipscomb

Thank you very much, Steve.

Operator

Our next question comes from the line of Marc Silk with C. Silk & Sons. Go ahead.

Marc Silk – C. Silk & Sons

Hi, thank you for taking my questions. I want to go back to the announcement, which didn't come from you but the Red Hawk Casino and your World Poker tour all in hold them. I would like to know it might be too early, but what is the feedback regarding this game what is your strategy with this game and then what – how can you derive revenue from this game is it different to, for every casino it could be a different agreement?

Steven Lipscomb

We have been doing this one for quite some time, and we did it with our partners Lake Entertainment, they used to be the – the parent company of WPTE and we haven't seen a significant amount of revenue from it. But it continues to do well in the properties that have taken it. So I give the example of Bellagio, it may have been the first, but was one of the first Casinos to take it. When I walk by Bellagio because we have events there and I walk by the table it has people there and they are actively engaged, enjoying it and it seems to work. There were a couple of challenges that Lake's had going into the market predominantly complexity of the game is the problem. So I don’t know if you I would suggest at somewhat if you go and sit down and play because its a great game it really does it was developed by David Sklansky and it really does simulate a table game form of Hold 'em and so all of that sounds really great, the issue in their early days of putting in the market was that it just took too long to deal hand and to explain things to people.

Because its more complex, its casino war or three card poker are great examples of games that you don’t have to do much to teach anybody how to play that game they sit down and two cards and you win or I win right. I think in this context part of it was the dealer speed needed to get faster in order to make it profitable enough for casino to want to take it in. And because of that they automated a lot of the dealing as you can see lots of table games are doing in the marketplace and not solved a chunk of the problem. So the reason is I can give you a lot of anecdotal stuff about the game, but it just hasn't had wide penetration into the market, which is how you make money on those things right for us to see as a significant future revenue source, it would need adoption in an awful lot of casinos and todate though its great that you guys saw the announcement from an other casino that was bring in and was excited about it enough to make an announcement to tell people that they should come in and play that shows the brand definitely works. But we haven't seen some big sworm to have people come and play this game. So, that's why I tell you gave the caution that we don’t have in our future projections this is being a big revenue generator for us.

Marc Silk – C. Silk & Sons

Because the two things I see its could complement a casino that doesn't offer poker number one and plays, people are intimidated playing against other players it takes that fear out that they can go against the dealer?

Steven Lipscomb

Well from your list of guards here, but I am just going to tell you that the other side of the equation is we are not the only competitor in the market so there are at least two other companies I know that have products in the market that are branded, but they're generic brand. I don’t think the World series has a table game that's out there because they're heroes, but there are two other competitors at least they just go into the market with kind of a table games type of Texas Hold 'em and again it just depends on where you get penetration and who is their I've seen their tables and our tables in various casinos. This has been going on for I think on guess three years, Tom just guessing I think its about three years that we've been in that business and again its hasn't some how been an inflection point that changed a lot.

Marc Silk – C. Silk & Sons

And my last question relates to the Fox Sports Net, do you guys – is there a ratings benchmark that if you hit a certain ratings level that may be there is a revenue sharing plan and it give you more ad time or anything to that extent?

Steven Lipscomb

Well, we don’t have that, what I will tell you is that that I think we have a terrific relationship with a great partner, they not just evidenced by the ClubWPT, but just for the World Poker Tour they are an entity that is building our brand everyday across their networks in the U.S. And we are not a license fee based company any more simply because while we have the, I believe the best poker content in the world. And with the one of the two biggest for sure depending on whether you talk to the biggest televised poker brand in the world, but still we are in a market that has the pressure of a lot of companies that are willing to pay people to put television on the air and even you stop better, when you have a market as competitive as this, the likelihood of us being able to generate any kind of significant license fees there, its not that we are spending our nights waiting up for what I can tell you is that this is working very well for them and its working very well for us and it puts us in the U.S. market appropriately where I believe we ought to be and that is on a sports television network.

Marc Silk – C. Silk & Sons

Continue the success. Thanks for taking my call.

Steven Lipscomb

Thank you, Marc. I appreciate it.

Operator

Thank you. Sir I show no further questions in the queue at this time. Mr. Lipscomb I would like to turn the conference back over to you at this time.

Steven Lipscomb

Well, again I just want to appreciate people for coming back around sticking with, its been a challenging couple of years. It has been good to see that all of the hard work I think that everybody on our team has done to try to turn our business around and put us in a place that we can not just be profitable, but see future revenues really grow and have growth potential.

And so when I take that 30,000 foot look that we try to take looking ahead I see that there are really opportunities for us with some incredible companies out there that continue to grow and build the poker space finding way for us do that with those companies is something we are doing today and I think the team that continues to work day and night at the World Poker Tour is led by some terrific managers, specifically Rohin Malhotra and Adam Pliska I think have really helped us get here and I think what Tom Flahie has done as he has come in as our CFO to really put focus on where focus needs to be has made it possible for us as a team to create something that’s very transparent, open, and easy to see for shareholders.

So you can see where we are, you can see what our real goals are and you can see what the potential of our future is so that shareholders can make the appropriate decisions as we do everything that we can to grow this business.

Operator

Thank you.

Steven Lipscomb

I want to just say with that I will turn it over to you.

Operator

Thank you. Ladies and gentlemen that does conclude the WPT Enterprises, Inc. second quarter 2009 earning conference call. Thank you for your participation. You may now disconnect.

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